MetaTrader
MetaTrader 4 and 5 are popular forex and CFD platforms with expert advisors for automation. Learn their differences, MQL, strategy testing and broker checks.
MetaTrader is a family of trading platforms developed by MetaQuotes Software. MetaTrader 4 (MT4), released in 2005, became the standard platform for retail forex trading, and MetaTrader 5 (MT5), released in 2010, extended it to more asset classes. Hundreds of brokers worldwide offer MetaTrader, which provides charts, indicators, one click trading and, most famously, expert advisors: automated trading programs written in MetaQuotes' own languages. Because the platform is licensed to brokers, your trading conditions depend on the broker, not on MetaTrader itself.
MT4 versus MT5#
| Feature | MT4 | MT5 |
|---|---|---|
| Released | 2005 | 2010 |
| Main markets | Forex and CFDs | Forex, CFDs, and exchange traded stocks and futures with some brokers |
| Programming language | MQL4 | MQL5 (more powerful, object oriented) |
| Timeframes | 9 | 21 |
| Order types | Basic | More pending order types |
| Depth of market | No | Yes |
| Strategy tester | Single threaded | Multi threaded, multi currency, real tick testing |
| Hedging | Yes | Both hedging and netting account modes |
MetaQuotes has encouraged brokers to move to MT5 and stopped issuing new MT4 licences, but MT4 remains common.
Expert advisors and indicators#
| Program type | What it does |
|---|---|
| Expert advisor (EA) | Automated strategy that can open, manage and close trades |
| Custom indicator | Calculates and displays values on charts |
| Script | Runs a one off action, such as closing all positions |
EAs can run continuously on a computer or a virtual private server near the broker's servers, a common setup for forex automation. See VPS, Cloud and Bare-Metal Servers and Automated vs Semi-Automated Trading.
The strategy tester#
MetaTrader's tester can backtest EAs on historical data. Results depend heavily on data quality and settings:
| Setting | Effect |
|---|---|
| Modelling mode | Real ticks are most realistic; "open prices only" is fast but crude |
| Spread | Fixed spreads understate costs in fast markets. See Spread Costs |
| Commission and swap | Must be included for realistic results |
| History quality | Gaps and poor data distort results |
Choosing a MetaTrader broker#
Because the platform is the same everywhere, broker quality makes the difference:
- Regulation and fund safety. See Trading Regulators: SEC, CFTC, FINRA and NFA.
- Spreads, commissions and swaps.
- Execution model: market maker or STP and ECN. See Types of Brokers.
- Server location and reliability.
- Symbol specifications: contract size, minimum lots, leverage. See Lots: Standard, Mini and Micro.
Some scam operations have used MetaTrader to look legitimate. The platform's presence says nothing about whether the broker is regulated. See Identifying Trading Scams.
Pros and cons#
| Pros | Cons |
|---|---|
| Widely available and free through brokers | Charting less modern than some alternatives |
| Large library of indicators and EAs | Many low quality or misleading EAs for sale |
| Strong automation support | MQL is specific to MetaTrader |
| Works on desktop, web and mobile | Conditions vary greatly by broker |
Frequently asked questions#
What is MetaTrader used for?#
Trading forex and CFDs, and on MT5 also stocks and futures with some brokers, with charting, indicators and automated expert advisors.
Should I use MT4 or MT5?#
MT5 is newer, more capable and increasingly the default; MT4 remains popular for its large library of existing tools.
Are MetaTrader expert advisors profitable?#
Some may be, but many sold EAs hide large risks or are overfitted; test them carefully on realistic data and demo accounts first.
Next, learn about a popular futures platform in NinjaTrader.
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